When assessing dividend stocks, the first thing most investors do is look to a company’s dividend yield. Especially during a time when investors are eager to find high-yield income producing assets, a stock’s dividend yield can become an indicator of an attractive investment opportunity. But this piece of information cannot be the first and last stop for assessment – dividend yields alone are often misleading.
In short, investors need to do more research than simply looking at share price charts and dividend yields. Fortunately, Dividend.com’s new ticker pages provide our readers with a slew of information, including payout ratios, dividend growth rates, and historical data, that can help with investment research. By utilizing Dividend.com and other statistical resources, an investor may find that a supposedly attractive investment won’t help them build wealth over the long-run. In contrast, thorough due diligence may just lead to investors finding investments that are diamonds in the rough. Regardless, knowing that not all dividend yields are created equal will put investors on the path to long-term wealth.